Structures and strategies to help create lasting family wealth

Getting the right structures in place can make a significant difference.

- Kenny Meiring

Question

I have built up a substantial set of assets and have no debt. How do I structure my finances to create long-term wealth for my children and grandchildren?

Answer

You want to build family wealth that lasts for generations instead of disappearing through taxes and bad decisions a generation later. I strongly recommend that you work with a certified financial planner, as there are often a number of moving parts. To make that conversation more productive, here are the core principles I typically use when structuring multigenerational wealth.

Diversify

Avoid concentrating your wealth in a single asset class. Aim to spread across property, equities and cash (and, where appropriate, alternatives).

Diversification should also be geographic: for many people, keeping roughly 25% to 45% of assets physically offshore should provide valuable currency and political risk diversification.

House your assets in the right vehicles